The Committee on Ukraine's Integration into the EU Reviewed the Draft Law on the Ratification of the Agreement Establishing the American-Ukrainian Investment Reconstruction Fund
07 May 2025, 11:02
At its meeting on May 6, the Committee on Ukraine’s Integration into the EU reviewed Draft Law №0309 on the ratification of the Agreement between the Government of Ukraine and the Government of the United States of America on the establishment of the American-Ukrainian Investment Reconstruction Fund. The draft law was developed to implement the domestic procedures necessary for the Agreement to enter into force. The Agreement was signed on April 30, 2025, in Washington, D.C., by Ukraine’s First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko and U.S. Secretary of the Treasury Scott Bessent. According to its explanatory note, the adoption of this draft law will provide a legal basis for the implementation of the Agreement, which will further strengthen economic cooperation between Ukraine and the United States.
Deputy Minister of Economy and Ukraine’s Trade Representative Taras Kachka informed Committee members about the details of the Agreement. He stated that the document contains 12 articles enabling the establishment of the Reconstruction Fund. On the Ukrainian side, the fund will be set up by the Agency for the Support of Public-Private Partnerships. On the U.S. side, it will be established by the Development Finance Corporation (DFC). “This agreement creates the legal framework for these two institutions to establish an investment fund between them. On the one hand, it enables this cooperation, and on the other — it sets clear boundaries that the institutions cannot go beyond,” said Taras Kachka. He noted that U.S. military assistance may count as a contribution from the United States to the fund. Ukraine’s contribution will be made in the future in the form of 50% of royalties it collects from the extraction of critical materials (rare earth elements), oil, or gas. According to Taras Kachka, this is not the only potential contribution from Ukraine — others are possible, but not obligatory. He also emphasized that this Agreement is not a replacement for the Security Agreement signed between Ukraine and the United States, nor for broader military or security cooperation. Rather, it forms a foundation for other areas of collaboration.
Ivanna Klympush-Tsintsadze, Chair of the Committee on Ukraine’s Integration into the EU, raised several concerns. She pointed out that the Agreement contains numerous references to the Limited Partnership Agreement between Ukraine and the United States. “The fact that Members of Parliament have not been provided access to documents that have either been approved or even initialed raises many additional questions,” said Ivanna Klympush-Tsintsadze.
She also stressed that the Agreement submitted for ratification contains very strict obligations for Ukraine to prioritize the Agreement over all other Ukrainian legislation. “At the same time, we see no internal procedures on the part of the United States that would somehow formalize its commitments under the Agreement,” the Committee Chair noted. Moreover, she said, the Agreement contains a questionable provision stating that the U.S. government will not introduce tariffs on trade conducted under the Agreement in the future.
Ivanna Klympush-Tsintsadze also emphasized that the Agreement currently lacks real safeguards to ensure that its provisions do not contradict Ukraine’s European integration commitments, as well as mechanisms for resolving such conflicts should they arise. “We strongly expect the Government to hold consultations with parliamentary factions and provide both comprehensive answers and all the necessary documents to enable a full understanding of the overall vision behind the agreements that have been reached so far,” she said.
Committee members concluded that the draft law does not contradict Ukraine’s international legal obligations in the field of European integration and may be submitted by the lead Committee to the Verkhovna Rada for consideration and adoption as a basis and as a whole.
Deputy Minister of Economy and Ukraine’s Trade Representative Taras Kachka informed Committee members about the details of the Agreement. He stated that the document contains 12 articles enabling the establishment of the Reconstruction Fund. On the Ukrainian side, the fund will be set up by the Agency for the Support of Public-Private Partnerships. On the U.S. side, it will be established by the Development Finance Corporation (DFC). “This agreement creates the legal framework for these two institutions to establish an investment fund between them. On the one hand, it enables this cooperation, and on the other — it sets clear boundaries that the institutions cannot go beyond,” said Taras Kachka. He noted that U.S. military assistance may count as a contribution from the United States to the fund. Ukraine’s contribution will be made in the future in the form of 50% of royalties it collects from the extraction of critical materials (rare earth elements), oil, or gas. According to Taras Kachka, this is not the only potential contribution from Ukraine — others are possible, but not obligatory. He also emphasized that this Agreement is not a replacement for the Security Agreement signed between Ukraine and the United States, nor for broader military or security cooperation. Rather, it forms a foundation for other areas of collaboration.
Ivanna Klympush-Tsintsadze, Chair of the Committee on Ukraine’s Integration into the EU, raised several concerns. She pointed out that the Agreement contains numerous references to the Limited Partnership Agreement between Ukraine and the United States. “The fact that Members of Parliament have not been provided access to documents that have either been approved or even initialed raises many additional questions,” said Ivanna Klympush-Tsintsadze.
She also stressed that the Agreement submitted for ratification contains very strict obligations for Ukraine to prioritize the Agreement over all other Ukrainian legislation. “At the same time, we see no internal procedures on the part of the United States that would somehow formalize its commitments under the Agreement,” the Committee Chair noted. Moreover, she said, the Agreement contains a questionable provision stating that the U.S. government will not introduce tariffs on trade conducted under the Agreement in the future.
Ivanna Klympush-Tsintsadze also emphasized that the Agreement currently lacks real safeguards to ensure that its provisions do not contradict Ukraine’s European integration commitments, as well as mechanisms for resolving such conflicts should they arise. “We strongly expect the Government to hold consultations with parliamentary factions and provide both comprehensive answers and all the necessary documents to enable a full understanding of the overall vision behind the agreements that have been reached so far,” she said.
Committee members concluded that the draft law does not contradict Ukraine’s international legal obligations in the field of European integration and may be submitted by the lead Committee to the Verkhovna Rada for consideration and adoption as a basis and as a whole.